EBay May Be Liable For Fake Goods: EU High Court

Law360, San Diego (July 12, 2011, 3:39 PM EDT) -- The European Union's highest court said Tuesday that eBay Inc. and other online retailers may be held responsible if their users sell fake goods through their websites, ruling in a trademark infringement case brought by Paris-based cosmetics maker L’Oreal SA.

The European Court of Justice found that when an operator of an online marketplace plays an “active role” in using trademarks, it cannot rely on an exemption from liability under EU law. The operator could also be liable if it was aware that online offers for...